DB:WWR

Stock Analysis Report

Executive Summary

Woolworths Group Limited operates retail stores.


Snowflake Analysis

Excellent balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Woolworths Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WWR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.5%

WWR

0.5%

DE Consumer Retailing

-0.9%

DE Market


1 Year Return

47.9%

WWR

2.8%

DE Consumer Retailing

12.8%

DE Market

Return vs Industry: WWR exceeded the German Consumer Retailing industry which returned 2.8% over the past year.

Return vs Market: WWR exceeded the German Market which returned 12.8% over the past year.


Shareholder returns

WWRIndustryMarket
7 Day-1.5%0.5%-0.9%
30 Day4.8%1.7%-0.4%
90 Day7.4%2.0%2.3%
1 Year52.6%47.9%6.9%2.8%16.3%12.8%
3 Year51.8%37.1%9.1%-1.8%15.8%5.7%
5 Year46.3%21.2%9.6%-7.2%19.7%3.3%

Price Volatility Vs. Market

How volatile is Woolworths Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Woolworths Group undervalued compared to its fair value and its price relative to the market?

38x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WWR (€26.2) is trading above our estimate of fair value (€25.92)

Significantly Below Fair Value: WWR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: WWR is poor value based on its PE Ratio (38x) compared to the Consumer Retailing industry average (21x).

PE vs Market: WWR is poor value based on its PE Ratio (38x) compared to the German market (21x).


Price to Earnings Growth Ratio

PEG Ratio: WWR is poor value based on its PEG Ratio (4.2x)


Price to Book Ratio

PB vs Industry: WWR is overvalued based on its PB Ratio (5.3x) compared to the XE Consumer Retailing industry average (1.6x).


Next Steps

Future Growth

How is Woolworths Group forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

9.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WWR's forecast earnings growth (9.1% per year) is above the savings rate (-0.4%).

Earnings vs Market: WWR's earnings (9.1% per year) are forecast to grow slower than the German market (13% per year).

High Growth Earnings: WWR's earnings are forecast to grow, but not significantly.

Revenue vs Market: WWR's revenue (3.2% per year) is forecast to grow slower than the German market (5.2% per year).

High Growth Revenue: WWR's revenue (3.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WWR's Return on Equity is forecast to be low in 3 years time (17.4%).


Next Steps

Past Performance

How has Woolworths Group performed over the past 5 years?

-13.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WWR has high quality earnings.

Growing Profit Margin: WWR's current net profit margins (2.5%) are lower than last year (2.8%).


Past Earnings Growth Analysis

Earnings Trend: WWR's earnings have declined by -13.6% per year over the past 5 years.

Accelerating Growth: WWR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: WWR had negative earnings growth (-7%) over the past year, making it difficult to compare to the Consumer Retailing industry average (2%).


Return on Equity

High ROE: WWR's Return on Equity (14.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Woolworths Group's financial position?


Financial Position Analysis

Short Term Liabilities: WWR's short term assets (A$6.3B) do not cover its short term liabilities (A$8.6B).

Long Term Liabilities: WWR's short term assets (A$6.3B) exceed its long term liabilities (A$4.2B).


Debt to Equity History and Analysis

Debt Level: WWR's debt to equity ratio (29.3%) is considered satisfactory.

Reducing Debt: WWR's debt to equity ratio has reduced from 41.4% to 29.3% over the past 5 years.

Debt Coverage: WWR's debt is well covered by operating cash flow (94.3%).

Interest Coverage: WWR's interest payments on its debt are well covered by EBIT (20.1x coverage).


Balance Sheet

Inventory Level: WWR has a high level of physical assets or inventory.

Debt Coverage by Assets: WWR's debt is covered by short term assets (assets are 2x debt).


Next Steps

Dividend

What is Woolworths Group's current dividend yield, its reliability and sustainability?

2.35%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WWR's dividend (2.35%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: WWR's dividend (2.35%) is low compared to the top 25% of dividend payers in the German market (3.63%).


Stability and Growth of Payments

Stable Dividend: WWR's dividend payments have been volatile in the past 10 years.

Growing Dividend: WWR's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (89.2%), WWR's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WWR's dividends in 3 years are forecast to be covered by earnings (72.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.4yrs

Average management tenure


CEO

Brad Banducci 0

4yrs

Tenure

AU$7,706,283

Compensation

Mr. Bradford Leon Banducci, also known as Brad, BComm (Acc), LLB, MBA, has been the Chief Executive Officer and Managing Director at Woolworths Group Limited since February 26, 2016. He serves as the Chief ...


CEO Compensation Analysis

Compensation vs Market: Brad's total compensation ($USD5.11M) is about average for companies of similar size in the German market ($USD4.38M).

Compensation vs Earnings: Brad's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Bradford Banducci
MD, CEO & Executive Director4yrsAU$7.71m0.016% A$5.2m
David Marr
Chief Operating Officer0.5yrsAU$3.33m0.0045% A$1.5m
Colin Storrie
Managing Director of Group Portfolio0yrsAU$2.34m0.0016% A$526.0k
Claire Peters
Managing Director of Woolworths Supermarkets2.7yrsAU$3.37m0.0019% A$625.9k
Steve Donohue
Managing Director of Endeavour Drinks Group2.1yrsAU$2.22m0.0016% A$536.0k
Stephen Harrison
Chief Financial Officer0.5yrsno datano data
John Hunt
Chief Information Officer3.1yrsno datano data
Paul van Meurs
Head of Investor Relations0yrsno datano data
Bill Reid
Chief Legal Officer0.3yrsno datano data
Andrew Hicks
Chief Marketing Officer0.7yrsno datano data

1.4yrs

Average Tenure

Experienced Management: WWR's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Bradford Banducci
MD, CEO & Executive Director4yrsAU$7.71m0.016% A$5.2m
Gordon Cairns
Independent Chairman4.4yrsAU$792.04k0.0027% A$892.2k
Jillian Broadbent
Independent Non-Executive Director9.1yrsAU$326.51k0.0057% A$1.9m
Michael Ullmer
Independent Non-Executive Director8.1yrsAU$322.33k0.0021% A$695.8k
Holly Kramer
Independent Non-Executive Director4yrsAU$333.50k0.00085% A$283.0k
Kathryn Tesija
Independent Non-Executive Director3.8yrsAU$357.96k0.00072% A$239.7k
Scott Perkins
Independent Non-Executive Director5.4yrsAU$367.92k0.0014% A$462.7k
Jennifer Carr-Smith
Independent Non-Executive Director0.8yrsAU$43.38kno data
Siobhan McKenna
Independent Non-Executive Director4yrsAU$316.25k0.00070% A$233.0k

4.0yrs

Average Tenure

56yo

Average Age

Experienced Board: WWR's board of directors are considered experienced (4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Woolworths Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Woolworths Group Limited
  • Ticker: WWR
  • Exchange: DB
  • Founded: 1924
  • Industry: Food Retail
  • Sector: Consumer Retailing
  • Market Cap: AU$54.500b
  • Listing Market Cap: AU$33.291b
  • Shares outstanding: 1.25b
  • Website: https://www.woolworthsgroup.com.au

Number of Employees


Location

  • Woolworths Group Limited
  • 1 Woolworths Way
  • Bella Vista
  • New South Wales
  • 2153
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WOLW.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 1993
WOWASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJul 1993
WWRDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 1993
WOWCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJul 1993

Biography

Woolworths Group Limited operates retail stores. It operates through Australian Food, New Zealand Food, Endeavour Drinks, BIG W, and Hotels segments. The Australian Food segment procures and resells food and related products to customers in Australia. It operates 1,024 Woolworths supermarkets and Metro stores. The New Zealand Food segment is involved in the procurement and resale of food and drinks to customers in New Zealand. This segment operates 180 Countdown supermarkets, as well as engages in the wholesale operations. The Endeavour Drinks segment procures and resells drinks to customers in Australia. It operates 1,577 stores under Dan Murphy’s, BWS, and Summergate brands, as well as Cellarmasters, Langtons, and winemarket.com.au online platforms. The BIG W segment procures and resells discount general merchandise products to customers in Australia. This segment operates 183 BIG W stores. The Hotels segment offers leisure and hospitality services, including food and drinks, accommodation, entertainment, and gaming in Australia. It operates 328 hotels, including bars, dining, gaming, accommodation, and venue hire operations. The company was formerly known as Woolworths Limited and changed its name to Woolworths Group Limited in December 2017. Woolworths Group Limited was founded in 1924 and is based in Bella Vista, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 21:42
End of Day Share Price2020/02/21 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.